Category Archives: SDLT

As previously announced, and following consultation, higher rates of SDLT are to be introduced for purchases of additional residential properties from 1 April 2016. The higher rates will be 3% above the current rates. SDLT will be calculated as follows: £0 – £125,000                3% £125,001 – £250,000       5% £250,001 – £925,000       8% £925,001 – … Continue reading SDLT and residential property – Update on the additional 3% charge

Extension of taxation on UK residential property held by non-natural persons As one of a number of measures aimed at tackling tax avoidance, the Government is extending the package of taxes on “enveloped dwellings”, lowering the threshold so that the relevant taxes apply to residential properties worth over £500,000 (rather than only to those worth … Continue reading More changes afoot for taxation of residential properties…

It must be unusual for a case on SDLT to make the front page of the FT but the decision in Vardy has achieved this distinction. Prior to the introduction of the general anti-avoidance rule (to be found at section 75A Finance Act 2003) SDLT avoidance was seen to be widespread. The fact that the … Continue reading SDLT: Vardy and the effect of sub-sales

A stamp duty land tax (SDLT) anti-avoidance scheme that has been widely used by residential purchasers has been stopped by measures announced in the Budget. The scheme broadly involved the purchaser granting an option simultaneously with completion of the acquisition of the property to an unconnected third party, exercisable many years in the future.   The … Continue reading More on the sub-sale and other general SDLT anti-avoidance measures

As noted below, the Chancellor announced a new 15% SDLT charge on the acquisition of UK residential property by “non-natural persons” where the consideration exceeds £2 million.  The details published today explain that the charge applies to transactions which have an effective date (i.e. were completed or substantially performed) on or after 21 March 2012. … Continue reading Enveloping of High Value Residential Properties – some of the detail

These changes certainly represent unwanted news for both non-UK resident individuals and UK resident but not UK domiciled individuals who often own high value real estate in central London through a structure which includes a corporate owner. However, the main reason that such individuals commonly utilise corporate entities is for reasons other than CGT and … Continue reading Comments on the new SDLT and CGT proposals for companies owning residential real estate

We were expecting a number of changes aimed at stamping out stamp duty land tax (SDLT) avoidance but the changes announced by the Chancellor have gone far further than was expected.  They include: 7% SDLT charge on the acquisition of residential properties over £2 million from tomorrow, 22 March 2012. 15% SDLT charge when residential properties of over £2 … Continue reading Stamp duty shock announcements and a CGT surprise

Notwithstanding the introduction of a general anti-avoidance rule in 2006, opportunities to avoid SDLT continue. To counter this three changes are announced: Sub-sales  Where the sub-sale provisions apply there is normally a single charge, payable by the sub-purchaser. However, if the sub-sale rules apply and the sub-purchaser can take advantage of an exemption then no charge … Continue reading SDLT anti-avoidance

No substantive changes have been announced today in relation to stamp duty land tax.  The Government has however announced that “it will examine whether further changes to the rules on stamp duty land tax on high value property transactions are needed to prevent avoidance in this area”. The Liberal Democrats had proposed a number of … Continue reading SDLT – anti-avoidance rules to come?

Some clarity concerning the anti-avoidance measures may be starting to emerge. Existing opportunities arise because transactions involving partnerships are dealt with under schedule 15 FA 2003, which schedule provides a complete code. Mitigation is possible by ensuring that the appropriate degree of connection exists as between the vendor and one or more partners in the purchasing partnership, so that … Continue reading SDLT and partnerships – some further thoughts